World Bank group is an apex body in the world which provides sources of funding, financial assistance and knowledge for developing countries with mission to end extreme poverty and to promote shared prosperity.
The Bretton
Woods Conference, held on 1944 was the reason behind creation of World Bank.
Nearly 44 countries participated in the conference which was held on July 1 to
22 on Bretton Woods, New Hampshire for the creation of new rules for post-World
War-II international monetary system. The outcome of the conference is the
creation of International Bank for Reconstruction and Development (IBRD) and
International Monetary Fund (IMF).
1.
The International Bank for
Reconstruction and Development (IBRD)
2.
The International Development
Association (IDA)
3.
The International Finance
Corporation (IFC)
4.
The Multilateral Investment
Guarantee Agency (MIGA)
5.
The International Centre for
Settlement of Investment Disputes (ICSID)
As the largest bank in the world
IBRD has 189 member countries. It supports the member countries by providing
guarantees, loans, risk management products, and advisory services to middle
income and creditworthy low income countries and also by coordinating to
regional and global challenges.
Funds for IBRD come from its
shareholding countries paying in about $14 billion in capital. IBRD can provide
loans more than $500 billion to the countries across the world for various
developmental activities such as education, agriculture, public administration,
infrastructure, financial and environmental and natural resources management.
The International Development Association complements World Bank’s
original lending arm i.e. IBRD. With 173 shareholders, IDA aims to reduce
poverty by giving loans to its member countries for programs which boost
economic growth, reduce inequalities and improve the living standards of the
people.
IDA also provides debt relief funds to the countries which are at
risk of debt distress through its two initiatives i.e. Heavily Indebted Poor
Countries (HIPC) for the countries which are highly effected by debt crisis and
the Multilateral Debt Relief Initiative (MDRI).
The International Finance Corporation is a sister concern of World
Bank group which works with the private sector in development countries to
create markets that open up opportunities for all.
IFC primarily focuses on private sector and provide them with
assistance in financial resources, technical expertise, and global expertise in
human resources, finance, supply chain, operations and other challenges.
MIGA
The Multilateral Investment Guarantee Agency, name itself describes
the function of the MIGA, it serves the developing countries by providing the
guarantees for various investments made by cross border investors and lenders
and also provides assistance in resolving disputes between investors and
governments.
MIGA plans to concentrate on four strategic direction for FY 21-23 which are deepen impact in IDA countries, complement market creation, take lead on global issues and improve the business model.
ICSID
The International Centre for Settlement of Investment Disputes is an institution which is devoted for solving international investment disputes settlement between investors and the state. ICSID is mentioned as the dispute settlement body in most of the international investment treaties. Solving more than 700 cases ICSID has its own method to resolve the disputes by conciliation, arbitration or fact-finding.
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